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The fall put Victoria well below the national average of 32.2 per cent.

Analysts stress that the recovery is likely to be concentrated in industries benefiting from the resources bonanza.

A separate NAB survey yesterday underlined the yawning gap between conditions in the mining-related industries and weak sectors such as retail and manufacturing.

While the bank's measure of business conditions rose one point to four, near its long-term average, conditions in mining jumped to 36 points, well ahead of other industries. Conditions in retail were the worst, at minus 15 points, while manufacturing conditions were not much better at minus six.

NAB chief economist Alan Oster said the survey underlined the stark differences between industries - but this was not likely to convince the Reserve Bank to cut interest rates.

''It's almost like absolutely no one is growing at the average,'' Mr Oster said.

''But what the Reserve Bank is looking at is the total picture. They're not going to use monetary policy for the multi-speed economy.''

Instead, he predicted that weak inflation would convince the Reserve to cut official interest rates from 4.25 per cent to 4 per cent next month.

Further underlining the two-speed economy, an Australian Industry Group survey said building activity had declined last month, and the industry had now spent almost two years contracting.